Goods and Services Tax (Amendment) Act 1996

REPUBLIC OF SINGAPORE

GOVERNMENT GAZETTE

ACTS SUPPLEMENT

Published by Authority

NO. 25]

Friday, August 16

[1996

The following Act was passed by Parliament on 12th July 1996 and assented to by the President on 1st August 1996:—

Goods and Services Tax (Amendment) Act 1996

(No. 25 of 1996)

I assent.

ONG TENG CHEONG

President

1st August 1996.

Date of Commencement: 16th August 1996

An Act to amend the Goods and Services Tax Act (Chapter 117A of the 1994 Revised Edition) and to make a related amendment to the State Immunity Act (Chapter 313 of the 1985 Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title and commencement

1. This Act may be cited as the Goods and Services Tax (Amendment) Act 1996 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Amendment of section 2

2. Section 2(1) of the Goods and Services Tax Act (referred to in this Act as the principal Act) is amended —

(a)

by inserting, immediately before the definition of “authorised person”, the following definition:

“ “authentication code” means any identification or identifying code, password or any other authentication method or procedure which has been assigned to a registered user of the computer service referred to in section 42 for the purposes of identifying and authenticating the access to and use of the computer service by the registered user;”;

(b)

by inserting, immediately after the definition of “customs duty”, the following definition:

“ “database report” means any automatic log, journal or other report which is automatically generated by the computer service referred to in section 42 for the purposes of recording the details of a transaction relating to an electronic notice including the authentication code, date and time of receipt, storage location and any alteration or deletion relating to the notice;”;

(c)

by inserting, immediately after the definition of “document”, the following definition:

“ “electronic notice” has the meaning assigned to it in section 42(1);”;

(d)

by deleting the words “other than Singapore currency” in the definition of “ “money” and “currency” ” and substituting the words “whether of Singapore or any other country”;

(e)

by inserting, immediately after the definition of “quarter”, the following definition:

“ “registered user” means a person who has been registered with and authorised by the Comptroller to gain access to and use the computer service referred to in section 42;”; and

(f)

by deleting the words “section 8(2)” in the definition of “taxable supply” and substituting the words “section 8(2A)”.

Amendment of section 8

3. Section 8 of the principal Act is amended by deleting subsection (2) and substituting the following subsections:

“(2) A person is a taxable person for the purposes of this Act while he is or is required to be registered under this Act.

(2A) A taxable supply is a supply of goods or services made in Singapore other than an exempt supply.”.

Amendment of section 21

4. Section 21 of the principal Act is amended —

(a)

by deleting the word “or” at the end of subsection (3)(o);

(b)

by deleting the full-stop at the end of paragraph (p) of subsection (3) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph:

“(q)

prescribed services comprising the provision of any means of telecommunication transmitted —

(i)	from a place outside Singapore to another place outside Singapore;
(ii)	from a place in Singapore to a place outside Singapore; or
(iii)	from a place outside Singapore to a place in Singapore.”;

(c)

by deleting the words “regulations made under subsection (6) or (7)” in subsection (8) and substituting the words “subsection (6) or regulations made under subsection (7)”; and

(d)

by inserting, immediately after the word “Singapore” in the seventeenth line of subsection (8), the words “and the goods shall be liable to seizure”.

Amendment of section 24

5. Section 24 (4) of the principal Act is amended by deleting the words “or supply of such goods” in the third and fourth lines and substituting the words “of goods or supply of goods or services”.

Amendment of section 25

6. Section 25 (2) of the principal Act is amended by deleting the word “and” at the end of paragraph (e), and by inserting immediately thereafter the following paragraphs:

“(ea)	prohibit the selling, giving or receiving in prescribed circumstances of goods in respect of which a claim for refund has been submitted or endorsed by the prescribed person;
(eb)	provide for the seizure and forfeiture of goods referred to in paragraph (ea); and”.

New section 33A

7. The principal Act is amended by inserting, immediately after section 33, the following section:

“Repayment of tax to those in business overseas

33A.—(1) The Minister may by regulations provide for the repayment, to persons carrying on business in countries other than Singapore, of tax on the importation of goods by them which would be their input tax if they had been taxable persons in Singapore.

(2) Repayment shall be made in such cases only, and subject to such conditions, as the regulations may prescribe or imposed by the Comptroller (either generally or in particular cases); and the regulations may provide —

“(a)	for claims and repayments to be made only through agents in Singapore;
(b)	either generally or for specified purposes —

“(i)	for the agents to be treated under this Act as if they were taxable persons; and
(ii)	for treating claims as if they were returns under this Act and repayments as if they were repayments of input tax; and

(c)	for generally regulating the methods by which the amount of any repayment is to be determined and the repayment is to be made.”.

Amendment of section 42

8. Section 42 of the principal Act is amended —

(a)

by inserting, immediately after the word “establish” in the first line of subsection (1), the words “or operate”;

(b)

by deleting the word “section” in the sixth line of subsection (1) and substituting the word “Act”;

(c)

by deleting the words “to the computer account of the Comptroller or a person who has been assigned an identifying code or password by the Comptroller (referred to in this section as a registered user)” in the seventh, eighth, ninth and tenth lines of subsection (1);

(d)

by deleting the words “by electronic transmission to the computer account of the Comptroller without delivery of any equivalent document or counterpart in paper form” in subsection (2) and substituting the words “to the computer account of the Comptroller”;

(e)

by deleting the words “by electronic transmission to the computer account of a registered user without delivery of any equivalent document or counterpart in paper form” in subsection (3) and substituting the words “to the computer account of a registered user”;

(f)

by deleting the words “served by electronic transmission to the computer account of the Comptroller using the identifying code or password of” in the first, second and third lines of subsection (4) and substituting the words “transmitted to the computer account of the Comptroller using the authentication code assigned to”;

(g)

by inserting, immediately before the word “without” in subsection (4)(a), the words “with or”;

(h)

by deleting the words “code or password” in the third line of subsection (4)(b) and substituting the words “authentication code”;

(i)

by deleting the words “had made no such transmission” in the twelfth and thirteenth lines of subsection (4) and substituting the words “has transmitted no such notice”;

(j)

by inserting, immediately after the word “inadmissible”, in subsection (5), the words “in evidence”;

(k)

by inserting, immediately after the word “the” in the third line of subsection (5), the words “making or”;

(l)

by inserting, immediately after the words “(including a print-out of that notice or copy)” in subsection (6), the words “or any database report (including a print-out of that report) relating to that notice”;

(m)

by deleting the words “data service provider” in the seventh line of subsection (6)(b) and substituting the words “record keeper”;

(n)

by inserting, immediately after the word “the” in the first line of subsection (7)(a), the words “authentication code and other”;

(o)

by inserting, immediately after the word “device” in the first line of subsection (7)(a), the words “(if known)”;

(p)

by deleting the words “that the facts stated or contained therein are correct, unless the contrary is proved” in the second, third and fourth lines of subsection (8) and substituting the words “, until the contrary is proved, that the contents of the electronic notice or copy thereof have been accurately transmitted”;

(q)

by inserting, immediately after the word “symbols” in the third line of subsection (9), the word “, codes”;

(r)

by inserting, immediately after subsection (9), the following subsection:

“(9A) Notwithstanding section 6, any authorised person or any person being employed or engaged in the administration of this Act or any subsidiary legislation made thereunder shall not be treated as having contravened section 6 merely because he communicates to the independent record keeper or his employee or permits the independent record keeper or his employee to have access to any electronic notice or any information contained therein; and section 6 shall apply to the independent record keeper and his employee as if they were persons employed in the administration of this Act.”;

(s)

by deleting the words “identifying codes or passwords” in subsection (10)(a) and substituting the words “the authentication codes”;

(t)

by deleting paragraph (e) of subsection (10) and substituting the following paragraph:

“(e)

for the appointment of an independent record keeper to be charged with the duty to maintain for a prescribed period a record of all the electronic notices and transactions made through the data service provider between the Comptroller and the registered users, such a duty to include keeping the database reports;”;

(u)

by deleting the words “data service provider” in the first line of subsection (10)(f) and substituting the words “independent record keeper”; and

(v)

by deleting the word “and” at the end of paragraph (f) of subsection (10), and by inserting immediately thereafter the following paragraph:

“(fa)

for the standards of security, confidentiality, data integrity and conduct of the computer service and for the review of the operations and activities of the data service provider by such authority or expert as may be prescribed; and”.

Amendment of section 46

9. Section 46 (5) of the principal Act is amended by deleting the words “sections 35 and 36 of” in the fourth line.

Amendment of section 63

10. Section 63 of the principal Act is amended by inserting, immediately after the word “refunded” in the eleventh line, the words “or to be refunded”.

Amendment of section 75

11. Section 75 (1) of the principal Act is amended by inserting, immediately after the word “Act” in the third line, the words “or any subsidiary legislation made thereunder”.

Amendment of section 78

12. Section 78 of the principal Act is amended —

(a)

by deleting the words “or penalty” in the fourth and fifth lines of subsection (1); and

(b)

by inserting, immediately after subsection (6), the following subsection:

“(7) For the purposes of this section, tax includes any penalty or any other money which a person is liable to pay to the Comptroller under this Act.”.

Amendment of section 79

13. Section 79 of the principal Act is amended —

(a)

by inserting, immediately after the word “which” in the eighth line of subsection (1), the words “, at the date of receipt of the notice or at any time not later than 90 days thereafter”; and

(b)

by inserting, immediately after subsection (2), the following subsections:

“(3) For the purposes of payment of any tax due from any moneys referred to in subsection (1) in a joint account at any bank or from the proceeds of sale of any immovable property owned by 2 or more persons as joint owners, the following provisions shall apply:

(a)

the person declared by the Comptroller under subsection (1) to be the agent of any person who is an owner of such moneys shall —

(i)	within 14 days of the receipt of the notice under subsection (1), send a notice by registered post addressed to every owner of such moneys at the address last known to the agent informing the owner of such declaration; and
(ii)	retain such amount of the moneys as is presumed under paragraph (b) to be owned by the person from whom tax is due and subject to paragraph (c) within 42 days of the receipt of the notice under subsection (1) pay over the tax due from such amount to the Comptroller;

(b)

it shall be presumed, until the contrary is proved, that the holders of a joint account at any bank shall have equal share of the moneys in the account as at the date of receipt of the notice under subsection (1) and that the joint owners of any immovable property shall share the proceeds of sale of the property equally;

(c)

any owner of such moneys who objects to the share presumed under paragraph (b) shall give notice of his objection in writing to the person declared to be the agent under subsection (1) within 28 days of the receipt of the notice of the agent under paragraph (a)(i), or within such further period as the Comptroller in his discretion may allow, and furnish proof as to his share of the moneys;

(d)

where an objection under paragraph (c) has been received, the person declared to be the agent shall —

(i)	retain the amount of such moneys referred to in paragraph (a)(ii) until such time as the Comptroller by notice under paragraph (e) informs him of his decision on the objection; and
(ii)	inform the Comptroller of the objection within 7 days of the receipt of the objection;

(e)

the Comptroller shall consider the objection and shall by notice in writing inform the person declared to be the agent of his decision and the agent shall, notwithstanding any appeal under paragraph (f), pay over any tax due from the share of moneys decided by the Comptroller as the amount, not exceeding the amount presumed under paragraph (b) to be the share of the person by whom the tax is payable, held by him for or due by him to the person;

(f)

any owner of such moneys aggrieved by the decision of the Comptroller under paragraph (e) may appeal against the decision to the Board of Review and the provisions of Part VIII shall apply, with the necessary modifications, to the appeal; and

(g)

for the purpose of this subsection, “joint account” means any account in the names of 2 or more persons but excludes any partnership account, trust account and any account where a minor is one of the joint account holders.

(4) Any person making any payment to the Comptroller under this section shall be deemed to have been acting under the authority of the person by whom any tax is payable and is hereby indemnified in respect of such payment.

(5) For the purposes of this section, “tax” includes any penalty or any other money which a person is liable to pay to the Comptroller under this Act.”.

New sections 83A to 83D

14. The principal Act is amended by inserting, immediately after section 83, the following sections:

“Seizure of goods

83A.—(1) Any authorised person may seize any goods together with the receptacle or package in which the goods are found where the relevant provision of this Act, with the exception of section 26, or any subsidiary legislation made thereunder provides for seizure of those goods.

(2) Whenever any goods are seized, the authorised person shall forthwith give notice of the seizure and the grounds thereof to the owner of the goods, if known, except that the notice shall not be required to be given where the seizure is made on the person, or in the presence of the offender or the owner or his agent.

(3) Any goods of a perishable nature or any animal or bird seized may be sold forthwith and the proceeds of sale held to abide the result of any prosecution or claim.

(4) Any goods which are of a dangerous character or which cannot be removed without undue expense may be destroyed on the instructions of the Comptroller.

(5) The Comptroller may, in his discretion, release any goods seized to the importer, owner or person having custody of the goods subject to such conditions and on such security as the Comptroller may require.

(6) Where the goods liable to seizure are found in any vehicle, vessel not exceeding 200 tons net registered tonnage or aircraft, such vehicle, vessel or aircraft may be seized in order to facilitate the removal or transportation of those goods.

Goods liable to seizure liable to forfeiture

83B.—(1) All goods liable to seizure under the provisions of this Act shall be liable to forfeiture except for the vehicle, vessel or aircraft seized under section 83A(6).

(2) An order for the forfeiture or for the release of anything liable to forfeiture under the provisions of this Act or any subsidiary legislation made thereunder shall be made by the court before which the prosecution with regard thereto has been held.

(3) An order for the forfeiture of goods shall be made if it is proved to the satisfaction of the court that an offence under this Act or any subsidiary legislation made thereunder has been committed and that the goods were the subject-matter of, or were used in the commission of, the offence, notwithstanding that no person may have been convicted of the offence.

(4) All goods forfeited shall be delivered to an authorised person and shall be disposed of in accordance with the directions of the Comptroller.

Goods seized in respect of which there is no prosecution, deemed to be forfeited if not claimed within one month

83C.—(1) If there is no prosecution with regard to any goods seized under this Act or any subsidiary legislation made thereunder, the goods shall be taken and deemed to be forfeited at the expiration of one month from the date of seizure unless a claim thereto is made before that date in accordance with this section.

(2) Any person asserting that he is the owner of the goods may, personally or by his agent authorised in writing, give written notice to the Comptroller that he claims the goods.

(3) On receipt of the notice, the Comptroller may, in his discretion, direct that the goods be released or may direct that the matter be referred to a District Judge or a Magistrate for his decision.

(4) The District Judge or the Magistrate shall issue a summons requiring the person asserting that he is the owner of the goods and the person from whom they were seized, if the person is known, to appear before him, and upon his appearance or default to appear, due service of the summons being proved, the District Judge or the Magistrate shall proceed to the examination of the matter.

(5) On proof that an offence under this Act has been committed and that the goods were the subject-matter, or were used in the commission, of the offence the District Judge or the Magistrate shall order the goods to be forfeited, or may in the absence of such proof order their release.

(6) In any proceedings under subsections (4) and (5), the burden of proof shall lie on the person asserting that he is the owner of the goods and on the person from whom they were seized, as the case may be.

No costs or damages arising from seizure to be recoverable unless seizure without reasonable or probable cause

83D. No person shall, in any proceedings before any court in respect of the seizure of any goods seized in exercise or the purported exercise of any power conferred under this Act or any subsidiary legislation made thereunder, be entitled to the costs of the proceedings or to any damages or other relief other than an order for the return of the goods or the payment of their value unless the seizure was made without reasonable or probable cause.”.

Amendment of section 84

15. Section 84 of the principal Act is amended —

(a)	by deleting the words “in that behalf” in sub-section (1);
(b)	by inserting, immediately after the word “associated” in the third line of subsection (4)(a), the word “device,”;
(c)	by inserting, immediately after the word “computer,” in subsection (4)(b)(ii), the word “device,”; and
(d)	by deleting the word “him” in the seventh line of subsection (4)(b)(ii) and substituting the words “the Comptroller or officer”.

Amendment of Fourth Schedule

16. The Fourth Schedule to the principal Act is amended by inserting, immediately after the word “the” in the first line of paragraph 4 (3) (a), the words “sale and”.

Miscellaneous amendments

17. The principal Act is amended —

(a)	by deleting the words “any regulations” wherever they appear in the following provisions and substituting in each case the words “any subsidiary legislation”: sections 31(6), 42(1), (4), (6) and (9), 43(2), 48(1)(a), (b) and (c), 58, 59(1)(a) and (2)(a), 62(1)(a), (b) and (c) and (2), 63(d), 64(2)(c) and (d), 66, 68(1), 74(1), 77, 85(1), 86(3) and 87(1);
(b)	by deleting the words “any order, regulations or notification” in section 26(3)(a) and substituting the words “any subsidiary legislation”;
(c)	by deleting the words “any order or regulations” in section 73(1) and substituting the words “any subsidiary legislation”; and
(d)	by deleting the words “any regulations or order” in section 78(6) and substituting the words “any subsidiary legislation”.

Consequential amendment to the State Immunity Act

18. Section 13 of the State Immunity Act [Cap. 313] is amended by deleting the word “or” at the end of paragraph (a), and by inserting immediately thereafter the following paragraph:

“(aa)

any goods and services tax; or”.

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